Broadcasters don’t stop transmitting television programs during a recession. That’s why Tom Bulford says ContentFilm (LON:CFL) could be a great penny stock for this downturn. The company has a low-risk business model and is trading at a huge discount today. But Tom says investors need to watch out for a £9 million preferred shares liability due in March 2009.
If you’re thinking of getting back into stocks, it’s better to arrive late than too early says Ben Traynor. Yes, losses this year have been spectacular. And the temptation to bargain hunt is strong. But Ben says investors should remember that they still have a once-in-a-lifetime opportunity to lose a lot of money very quickly.
I am not a shareholder in OCZ. But I did manage to get along to a presentation for its shareholders – of which only one bothered to turn up! I wanted to know whether OCZ could make it on to the short list for my new “bounceback report” – shares that have…
Over in the UK, where the economy is already shrinking, Ben Traynor looks ahead to the world after this downturn. He sees three major changes to the future global economy: 1) A larger role for governments. 2) Less efficient capital allocation. 3) More protectionism, especially in the US, with disastrous consequences for the dollar.
The recruitment industry is getting whacked right along with most other sectors right now. But Penny Sleuth’s Tom Bulford sees strong potential for Hexagon Human Capital (LON:HHC). The company is well protected from the purge in the financial sector and has a solid cash flow. Tom says this is one to watch for the future…
Building suppliers aren’t popular with investors. Today, US housing market data revealed existing home prices fell by a record 9.5% in August. In Britain property sales are at their lowest for 50 years. Nevertheless, Tom Bulford says Eleco (LON:ELCO) is a great contrarian play. The company has diverse profit stream from prison- and school-building programs, which should protect it from a recession. With a P/E of over six and a yield of over 4%, Tom says this is a stock to watch.
The proposed $700 billion safety net for banks and lenders hasn’t stopped the Dow from sliding over 200 points today. Neither has the SEC’s temporary ban on the short selling of 799 financial institutions.
According to Dan Denning in The Daily Reckoning Australia, the ban could actually make the crisis worse. That’s because investors could be reluctant to take up long positions in stocks when they cannot hedge their risks with short plays.
If confidence is not restored quickly, the next logical step for regulators would be to close the markets altogether…
Fleet Street Daily editor Ben Traynor says Monday’s post-bailout stock-market rally is unlikely to be repeated again anytime soon. And as long as the roots of the financial problem – too much junk debt in the system – still exist, Ben says investors should treat any stock rally with extreme caution.
Penny Sleuth’s Tom Bulford says Britain’s politicians and banking bosses are desperately trying to blame this financial crisis on external factors. Nobody is willing to accept responsibility for the reckless business practices of the past decade. This spells more bad news for UK stocks and the British pound…
Things appear to be going from bad to worse over in Britain. The latest growth forecasts from the OECD say the country is already in recession, and is the only major economy to reach this dreaded condition…so far. Ben Traynor at Fleet Street Daily says the outlook is grim for the the economy, the FTSE index and the British pound. But there are still ways to make profits when times are hard.